Govt Assures Pension Parity Will Continue Despite Finance Bill Provision

Secretary (Pension) Clarifies No Change to 7th CPC Parity in Video Conference with NC JCM Staff Side

In a significant development concerning pensioners under the Central Government, the Department of Pension & Pensioners’ Welfare (DoP&PW) has reassured stakeholders that the parity in pensions introduced by the 7th Central Pay Commission (CPC) will continue unaffected, despite recent provisions introduced in the Finance Bill, 2025.

This assurance came during a video conference held on March 29, 2025, between the Secretary (Pension) and the Staff Side members of the National Council (JCM), alongside representatives of various pensioners’ associations.

Also read: Understanding the Controversy Surrounding Older Pensioners and the 8th Pay Commission in the Finance Bill

What’s in the Finance Bill 2025?

The Finance Bill includes a chapter validating the Central Civil Services (Pension) Rules, allowing the Government to make distinctions among pensioners based on:

The date of retirement, or
The date of operationalisation of CPC recommendations

This move, although administrative in nature, triggered concerns among stakeholders who feared that it might lead to disparities similar to earlier pay commission regimes.

Rising Concerns Among Pensioners

The Staff Side of NC JCM and several Pensioners’ Associations strongly opposed the provision, interpreting it as a potential reversal of the pension parity established by the 7th CPC.

The key concern: retirees before and after 01.01.2026 (the likely implementation date of the 8th CPC) might receive unequal pension benefits.

They viewed the provision as not only discriminatory but also in conflict with past Supreme Court judgments upholding pension parity.

Staff Side Members Who Participated

The meeting was attended by:

Shiva Gopal Mishra
Guman Singh
C. Srikumar
Bhosle
Shankar Rao
Roopak Sarkar

These leaders expressed their deep apprehension about any attempt to revive pension disparities, urging the Government to issue a formal clarification.

Government’s Clarification: Parity Will Remain

In response, the Secretary (Pension) provided detailed clarifications:

Precedents exist, but the situation today is different:
While disparities did exist during the 5th and 6th CPCs, the 7th CPC explicitly recommended parity, which has already been implemented.
No rollback of 7th CPC parity:
The Government has no intention to disturb the parity provided under the 7th CPC. The new provision is meant to validate the authority for such decisions under CCS (Pension) Rules, but will not affect existing pension structures.
8th CPC will maintain parity:
The Government is committed to maintaining fairness and will carry the same parity into the 8th CPC recommendations, removing any room for misinterpretation.

Call for Official Clarification and Inclusion in 8th CPC Terms

To dispel doubts and protect the interests of pensioners, the Staff Side demanded that the Government issue a written clarification, and that the issue be included in the Terms of Reference of the 8th CPC.

The Secretary (Pension) assured that this clarification will be formally issued.

Commutation Restoration: Referred to 8th CPC

The Staff Side also raised the long-pending issue of restoration of commuted pension after 12 years. The Secretary informed that this matter has been officially referred to the 8th CPC for detailed examination.

What’s Next?

While the Government has offered firm reassurance regarding pension parity, the Staff Side and pensioners’ associations await formal communication and inclusion in CPC guidelines.

Further updates on the Government’s official stand are expected soon.

View NCJCM Letter: